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March 25, 2012 / davebirss

Lee Clow on how ad agencies should be compensated according to talent

“There are more talented and less talented companies in our business”.

Hell yeah!

And Lee talks about one of my personal gripes – how procurement people bugger up the pitching process. They see all agencies as being equal. They don’t realise that truly great ad agencies can make a massive difference for their clients. Whereas less talented agencies will create work that just won’t get noticed. Money then gets used as a stick to beat agencies with.

This is something I strongly believe the ad industry needs to be looking at. It needs new remuneration models. And it probably needs to experiment a bit to see what works best for them and their clients.

Over the years I’ve tried to get agencies to look at this. But so few of them are willing to. They like the certainty of a fixed fee. And don’t seem to have the confidence in their own work to even consider a payment by results model.

Have you seen any interesting examples of agency remuneration? Or client contracts?

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